By Courtney Trenwith
92% of pre-retirees in the country provide regular financial support to at least 1 person, which is among the highest in the world
More than half of all UAE working residents provide regular financial support to their spouse, according to a new HSBC report.
About 22 percent also give money to at least one child aged 16 or older and 6 percent financially support grandchildren.
The ongoing financial payments have contributed to a decline in inheritance because workers are instead distributing their surplus money throughout their lives, the HSBC report found.
“Financial obligations to their dependents weigh on people’s ability to not only save for their own retirement, but also to leave behind an inheritance for their loved ones,” the report says.
“This sentiment is particularly acute in the UAE as nearly 92 percent of pre-retirees in the country say they provide regular financial support to at least one other person, which is among the highest across the world and far exceeds global average of 73 percent.”
Part of the high rate in the UAE is due to the expatriates, many of whom come from other countries who have a high proportion of people who regularly financially support a dependent, including Indonesia (96 percent), Malaysia (92 percent) and India (90 percent).
The HSBC report also found the concept of inheritance is becoming less of a reality as workers face increasing living costs.
“Traditional inheritance may be dying out, as people increasingly have to redistribute their savings during their lifetimes,” the HSBC report says.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
I would like to understand and raise a question here to know what are the readers opinion on how this working lifestyle of couples affect the family life and focus on children?
How much percentage of your daily routine do you contribute to work and family/Children? and Do you think it is healthy?